JUNE 2006 EDITION ARCHIVE
Legal Updates
Amendments Enacted to the General Law for the Handling and Processing of Waste
On May 22, 2006 Mexico published amendments to the General Law for the Handling and Processing of Waste. The reforms include measures for correcting environmental irregularities and verification procedures. In general terms the amendments incorporate the need to take corrective action in order to guarantee compliance with such law, and the Law authorizes the Secretary of Environmental Protection to carry out inspection and supervision activities relating to hazardous waste, and to impose... [Read More]The Supreme Court of Justice Holds that Audits of the Same Fiscal Years and Tax Payments Violate Guaranties of Legal Security
Through its decision on May 12, 2006 the Second Chamber of the Supreme Court of Justice of the Nation determined that it was unconstitutional for the Taxpayer Administration Service (SAT) to exercise its audit authority two or more times with respect to the same fiscal year, in regard to the same contributions currently permitted in Article 46 of the Fiscal Code of the Federation. The Supreme Court determined that the legal provision mentioned above violates the guaranty against legal security,... [Read More]Possible Unconstitutionality of Non-Compete and/or No Investment Clauses
Contracts and clauses which contain elements of non-compete and/or no investment, which impose a prohibition to compete against or invest in a certain activity or business, likely are not valid under Mexican law based on the Mexican constitutional guaranty to freely exercise one’s profession, employment or business, which is enshrined in Article 5, first and sixth paragraphs of the Political Constitution of the United Mexican States. In the case of individuals, in general terms it is unconstitutional... [Read More]Business & Politics Outlook
Felipe Calderón (PAN) and Andrés Manuel López Obrador (PRD) Remain in Dead Heat for Mexican Presidency
With less than a month before the July 2nd presidential elections, and following the second televised debate among the presidential candidates, Felipe Calderón of the National Action Party (PAN) and Andrés Manuel López Obrador, of the Party of the Democratic Revolution (PRD) remain in a virtual tie. The Institutional Revolutionary Party (PRI) candidate Roberto Madrazo continues to be in third place approximately six points behind the leaders. In recent weeks members... [Read More]Soccer and Politics in Mexico
As candidate, Felipe Calderón has succeeded in bringing into his campaign various members of the Mexican 2006 World Cup Football Team. The Consulta Mitofski research firm published a poll finding that 62% of those asked believe the Mexican team will do well, which denotes an optimistic environment and shows support for the Mexican team. One out of every three Mexicans believes the current champion, Brazil, will repeat its victory of four years ago, while one in ten believes Mexico... [Read More]Volatility in Mexican Markets
Many experts think uncertainty over a possible increase in international interest rates will continue to affect Mexican markets, causing additional volatility leading up to the July elections. As a result of this, analysts have stated that the behavior of markets in the last year of Vicente Fox’s government is somewhat less unstable than the last year in office of his predecessors, Ernesto Zedillo and Carlos Salinas de Gortari. During the first half of the year, the Mexican Stock... [Read More]Mexico and Argentina Might Eliminate Custom Duties
It is hoped that Mexico and Argentina will sign an agreement to eliminate customs duties on 1,460 products and increase bilateral commercial relations, stated the Argentinean government. The subsecretary of the Southern Common Market (Mercosur) and the Minister of Foreign Relations of Argentina, Eduardo Sigal, stated that the agreement would benefit 55% of those goods currently traded between Mexico and Argentina, and would increase commercial trade between 20 and 30%.Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of June 8, 2006 was $11.32 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on June 8, 2006 at 18,151.74 points.Interest Rates
On June 8, 2006, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.34%.Feature Website
SCJN.gob.mx
We recommend that our friends and clients visit the page: www.scjn.gob.mx, where they will find general information from the Federal Judicial Branch and decisions of the Mexican Supreme Court of Justice.